Inventory Management System
“Quantity on hand” refers to the minimum quantity for an inventory item to be stocked on the shelf so that you won’t run out before the next order. Many practices never establish actual numbers for the quantity to keep on hand and manage inventory by what seems appropriate without establishing a system. This can result in inefficiency and high inventory expenses.
To establish minimum quantity on-hand amounts for each inventory item consider how much product you need so that you don’t run out of supplies but also don’t keep too much product on the shelf. To determine the appropriate amounts for your practice look at the quantities used in a 30-60 day time period or less. If you notice that some products stay on the shelf for several months, then you have an opportunity to reduce inventory and spending.
Quick inventory turnover minimizes overstocking and helps keep costs down. The practice management software should be able to generate reports which detail the monthly usage of drugs and supplies. Adjust the quantities to keep on hand seasonally for some products such as flea and tick preventives.
Establishing re-order points for each inventory items is time-consuming but well worth the time spent initially to improve efficiency and cost-savings long-term. The re-order point is reached once the quantity on hand drops to a point where the hospital may run out of the item if an order is not placed. For example, perhaps your quantity on hand amount for intravenous fluids is four cases. You may set the re-order point at 3 cases of fluids which means once you are down to 3 cases; you will order an additional case of fluids. Here’s another example: the quantity on hand for 68mg Baytril might be 1Ž2 bottle and if you see the quantity dip below this amount, you place an order for another bottle.